Status of the Industry in Jordan

The Hashemite Kingdom of Jordan is a safe and stable environment for investments. Laws and regulations of the Jordan investment commission aim to strengthen the incentives granted to investors and simplify the setup of enterprises, obtaining the necessary licenses procedures and benefits from customs duties exemption on production equipment and fixed assets for the exercise of industrial activities. The investment law allows any investor to transfer the ownership rights and privileges as the Jordanian investor.

The main development zone benefits as per the Jordanian Investment Law are:
- Low flat 5% corporate income tax of the registered enterprise realized from its economic activity within the development zone,
- 0% sales tax (on business-related purchases),
- 0% social services and dividends tax,
- 100% foreign ownership.

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FTAs & Agreements with Foreign Countries

As part of Jordan's continuous efforts to foster economic growth, boost exports, and establish global cooperation, the country has successfully signed significant international trade agreements. These FTAs open doors to a vast network of consumers worldwide, providing access to over 1.5 billion potential customers.

Here are some key highlights of the Free Trade Agreements that Jordan has entered:
- Agreement with the World Trade Organization (WTO) in 2000: A significant milestone that solidified Jordan's commitment to international trade and paved the way for further engagements with various economies,
- United States (2001): A crucial FTA that has facilitated enhanced trade relations between Jordan and the world's largest economy, creating countless opportunities for businesses on both sides,
- EU-Jordan Association Agreement: Strengthening economic ties with the European Union, this agreement has played a pivotal role in promoting trade and investment between Jordan and EU member states,
- European Free Trade Association (EFTA) - Norway, Switzerland, Iceland, and Liechtenstein: By collaborating with these EFTA countries, Jordan has unlocked access to new markets and diversified its trade opportunities,
- United Kingdom: As the UK continues to build its post-Brexit trade relationships, this FTA provides a strategic advantage for Jordanian businesses looking to tap into the UK market,
- Canada: The FTA with Canada has opened doors to a wide array of business prospects, bolstering economic relations between both nations,
- Singapore: A gateway to the thriving Asian market, the FTA with Singapore offers promising prospects for businesses seeking to expand their reach,
- Greater Arab Free Trade Area Agreement (GAFTA): Strengthening trade within the Arab region, this free trade agreement fosters economic integration and boosts regional cooperation, and
- FTA Agadir Countries: By collaborating with Egypt, Morocco, and Tunisia, Jordan has forged a significant trade alliance to enhance economic opportunities in the region.

Moreover, Ad-Dulayl Industrial Park operates within Qualifying Industrial Zones (QIZs) established under Presidential Proclamation 6955 in Jordan on November 21, 1996. QIZs provide businesses with distinctive advantages, including:
- Preferential treatment for products co-produced within QIZs, facilitating access to the United States market.
- Duty-free access to the U.S. market for products meeting QIZ criteria.
- Enhanced economic relations and trade benefits with the United States through QIZ initiatives.

Furthermore, Jordan has also established the Pan European-Mediterranean Free Trade Area Preferential Market Access, further reinforcing its commitment to fostering economic growth and development, below are some useful references regarding this protocol:
- Jordan Trade for Employment,
- Short Primer on “The New Transitional Rules of Origin”,
- Export Guide to the EU.

Further Resources

IDMC Favicon          
Ad-Dulayl Industrial Park & Real Estate (IDMC) Headquarters
11 Al-Sharif Al-Hussein Bin Ali Street, Fourth Floor
P.O. Box 5656, Jabal Amman 11183, Jordan
Ad-Dulayl Industrial Park Offices
Salah Al-Din Street
Dhlail, Jordan
Tel: +962 6 4645416 
Fax: +962 6 4625701
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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